Wall Street tumbles, snapping a 3-week bullish streak

July 19, 2021 - 5 days ago
Share on twitter
Share on facebook
Share on linkedin
Share on email

All three major U.S. stock indexes ended the week lower on Friday, as inflation worries dampened bullish interest, while investors worried about a rise in coronavirus cases tied to the highly contagious Delta variant.

At the finishing bell, on the New York Stock Exchange (NYSE), the broad-based Standard & Poor’s 500 Index finished the session -32.87 points lower, or -0.75%, to end at 4,327.16.

Meanwhile, the blue-chip Dow Jones Industrial retreated -299.17 points, or -0.86%, to 34,687.85, with losses accelerating later in the trading session.

The technology-focused Nasdaq Composite Index tumbled -115.90 points, or -0.80%, to 14,427.24.

All three major U.S. stock indexes ended the week lower, each snapping a 3-week bullish streak.

Despite the week’s losses, the Dow is still up +13% for the year and sits just 1.15% from an all-time high.

The S&P 500 is up +15% on the year and is 1.51% below its record level.

In corporate news, Moderna shares jumped +10.3% after S&P Global said it would add the pharmaceutical company to the S&P 500 index, effective as of July 21.

Meanwhile, concerns about the Delta variant weighed on the shares of airlines and cruise operators on Friday, making them among the S&P 500’s worst performers. Carnival shares fell -4.7%, and Alaska Air declined -4%.

Despite this week’s losses, major indexes have still been hovering near records.

The yield on the benchmark 10-year Treasury note settled at 1.300% on Friday, falling for the third consecutive week.

The week has been marked by several choppy sessions of trading as investors parsed higher-than-expected inflation reading on Tuesday, comments from U.S. Federal Reserve Chair Jerome Powell and economic data on Friday.

On Friday, the U.S. consumer sentiment index from the University of Michigan came in at 80.8 for the first half of July, down from 85.5 last month and worse than forecasted.

The report showed inflation expectations rising, with consumers believing prices will increase 4.8% in the next year, the highest level since August 2008, while U.S. retail sales rose +0.6% in June, missing the forecast of -0.4%.

Share on twitter
Share on facebook
Share on linkedin
Share on email

Leave a Reply